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"id": 234193,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/234193/?format=api",
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"type": "speech",
"speaker_name": "Mr. Kiunjuri",
"speaker_title": "The Assistant Minister for Energy",
"speaker": {
"id": 175,
"legal_name": "Festus Mwangi Kiunjuri",
"slug": "mwangi-kiunjuri"
},
"content": " Mr. Temporary Deputy Speaker, Sir, I beg to move that The Energy Bill be now read a Second Time. Mr. Temporary Deputy Speaker, Sir, Sessional Paper No.4 of 2004 on Energy has articulated the legal and regulatory framework challenges impacting adversely on the efficient operation of the energy sector. To address such challenges, the Sessional Paper has called for a critical review of the existing energy sector legislations and also made recommendations on appropriate changes to be effected to improve governance in the sector. The Energy Bill, consistent with the policy, has taken a broad new clause, amended and consolidated others in the current Electric Power Act and the Petroleum Act, Cap.116, to ease implementation of the legal and regulatory framework in a clear and predictable manner. Mr. Temporary Deputy Speaker, Sir, to lead the debate, I would like to highlight some of the critical issues which have been addressed in the Energy Bill. Part II of the Bill provides for the establishment of the Energy Regulatory Commission to undertake the regulatory functions of the November 16, 2006 PARLIAMENTARY DEBATES 3773 Electricity Regulatory Board as provided for under the Electric Power Act and those undertaken by the Minister for Energy as vested in the Petroleum Act, Cap.116. In addition to regulating the electric power and petroleum sub-sector, the functions of the Energy Regulatory Commission have also been expanded to include precedential regulations on production, distribution, supply and use of renewable and other forms of energy. The Temporary Deputy Speaker, Sir, the new Energy Regulatory Commission has also been given powers to issue, renew and revoke licences and permits for all undertakings in the energy sector which, among other things, include electricity and petroleum businesses, while the powers of the Minister have been confined to making regulations on recommendations of the Commission. The Bill gives the Minister authority to direct the Commission on energy policy for exploitation and development of various forms of energy sources, consistent with the national social economic aspirations as appertains to regulation. In addition, licensing of petroleum stations will be delegated to the Provincial Administration by the Energy Regulatory Commission in recognition of the fact that it is not economically and administratively feasible for the Commission to issue such licences in all parts of the Republic. Mr. Temporary Deputy Speaker, Sir, Part III of the Bill deals with electrical energy. Unlike the current electricity law which does not allow individuals or communities to generate and distribute electricity to their neighbours without approval of the Kenya Power and Lighting Company, the Bill, among other things, provides for issuance of licences and or permits for generation and distribution of electricity to such persons or communities. This provision, which is favourable for small-scale hydro power plants for use by rural communities, is contained in Clause 27 of the Bill. Another very important aspect of this Bill is that it enables power generators and distributors to negotiate long-term licences with the Energy Regulatory Commission, strictly on the basis of the merit of each applicant. The provision enables the Commission to, over time, demand efficiency and better utilisation of resources by licensees with changing technologies. Mr. Temporary Deputy Speaker, Sir, the Rural Electrification Authority also comes under Part III. As hon. Members are aware, Kenya's national electricity access rate is extremely low at 16 per cent of the total population and 5 per cent of the rural population. This compares very unfavourably with the average for developing countries, which is more than 34 per cent. It is for this reason that the Rural Electrification Authority is being established with the mandate of mobilising resources to accelerate implementation of the Rural Electrification Programme. Mr. Temporary Deputy Speaker, Sir, the resources that will be at the disposal of the Authority will include appropriation by Parliament, levies and proceeds from fines, including external borrowing. The Authority will, among other things, manage the Rural Electrification Programme funds, develop and update the Rural Electrification Masterplan and explore least-cost supply options, including small hydro-electricity generation and the solar voltaic hybrid system, taking into account specific needs of certain areas. The Authority will have adequate staff complement to undertake preliminary route survey, followed by detailed design of projects and wayleave accession after which we will have them tendered for construction on turn-key basis. In addition, it will be expected to build capacity for handling transmission and power distribution systems covering rural areas, as is the case in some African countries, such as Egypt. Through this strategy, the current inability of the Kenya Power and Lighting Company (KPLC) to handle the substantial annual Government funding since 2003/2004 fiscal year under the Rural Electrification Programme will become a thing of the past. Mr. Temporary Deputy Speaker, Sir, petroleum is covered under Part IV of the Bill, and as you all know, concerns have continued to be raised on the high fuel prices and the cartel-like behaviour by the major oil companies leading to inadequate competition in the market. The Bill empowers the Commission, under Clause 5(3)(e) to monitor and ensure observance of the principle 3774 PARLIAMENTARY DEBATES November 16, 2006 of fair competition and has provided for enhanced fines under Clause 95 for sale of low quality fuel or motor fuels adulterated with kerosene. The penalty proposed for this offence is a fine not exceeding Kshs2 million or a maximum term of imprisonment of two years or both. Unlike the existing petroleum law, Clause 96 of this Bill takes into account the need for industry operators to maintain maximum operational stocks and empowers the Minister to prescribe the quantities and locations of holding such stocks. Clause 97 of the Bill also gives authority to the Minister to provide finance, manage or procure national strategic petroleum stocks. This provision is currently non-existent in the Petroleum Act, CAP.116. Mr. Temporary Deputy Speaker, Sir, the Bill also makes it mandatory for all persons engaged in petroleum businesses to comply with environmental, health and safety standards, including those set for equipment, facilities and installations. In the case of marine pollution, failure to observe any of the regulations in the Bill relating to the precautions to be taken with respect to vessels carrying petroleum within a port or within Kenya's exclusive economic zone, the ship master will, on conviction, be liable for a fine not exceeding Kshs2 million or a jail term of up to two years, or both. Mr. Temporary Deputy Speaker, Sir, Part V of the Bill covers renewable energy and conservation. For the first time, and consistent with Sessional Paper No.4 of 2004, provisions have been made for promoting exploitation and conservation of renewable energy. Under Clause 103, the Bill gives the Minister authority to promote the development and use of renewable energy which, among other things, includes solar, biogas---"
}